Business Energy Costs Post-Brexit
North West businesses need to act quickly to secure their energy prices, before Brexit cost increases With the...Read More
We understand it can be tricky organising your business’s finances, especially when covering essential costs such as energy. That’s why our guide is here to explain the VAT and CCLs paid on business gas and electricity tariffs to help you determine if you are eligible for a discount on these costs.
Most businesses pay 20% VAT on their gas and electricity bills. Energy suppliers automatically apply VAT to your bills, so if your business is eligible for a discount down to 5% VAT on energy, you need to apply for the VAT reduction separately.
To be eligible for the discounted 5% VAT for gas and electricity, you must meet these criteria:
If your usage is low enough, your energy supplier should automatically reduce the VAT amount for you. To be a low gas and electricity user, your business must:
To apply for discounted VAT on your business energy tariffs, you can use a VAT declaration form. You can get this form from your supplier, and apply for a rebate for the past four years of energy usage. You can apply for your VAT rebate from either your supplier or HMRC.
A Climate Change Levy (CCL) is a tax applied to business energy contracts to encourage commercial customers to increase their energy efficiency and reduce their emission levels.
If you are eligible to apply for discounted VAT, you are also likely to qualify for immunity from paying the main rates of CCL
If you are not eligible for immunity from paying the main rates of CCL, you receive a discount on CCL tax by signing a Climate Change Agreement (CCA). The conditions within a CCA mean that when you sign, you are agreeing to make certain alterations to your business to improve its energy usage and reduce its emission levels.
If you require any help with determining your eligibility for the available VAT and CCL discounts, get in touch on 0800 411 8830 and our team will happily advise you.
If you feel you are spending too much on your energy bills, you can start tackling this by comparing a wide range of energy tariffs with our online comparison service. We work with a variety of suppliers and find gas and electricity rates tailored to your business’s usage, so you can feel secure knowing you’re getting the best deal for your business.
Thank you Mark!
"Having used Switch My Business for the first time, we were lucky to be connected to Mark Weeks. Mark was extremely patient and helpful throughout the entire process and explained the appropriate steps we should take before we move providers and was upfront and honest about anything else. Would strongly recommend their services and would like to thank Mark for all his help."This review was posted by Clare Smyth on the 20th of September 2019
Have used Switch my Business on a…
"Have used Switch my Business on a number of occasions and extremely happy with the service. A special thanks to Mark Weeks who is more than helpful."This review was posted by Liz Riley on the 19th of September 2019
Professional and relatable
"I’m always nervous about speaking to companies as a small business because I’ve been taken advantage of more than once and ended up with huge bills. I spoke to Cheryl today who switched my commercial bills over for me and saved me an amazing amount. She was great, professional and thorough without making me switch off with her great sense of humour. The deal she got me was also brilliant. Thank you Cheryl I will be recommending you in future"This review was posted by Emma on the 18th of September 2019
friendly and efficient service
"friendly and efficient service, didnt use in this instance, but came back with slightly better rate, thank you Mark"This review was posted by Anne Bayliss on the 18th of September 2019
Cheryl Sreenan was most helpful and…
"Cheryl Sreenan was most helpful and informative and very pleasant to talk with and dealt with all the boring details in high speed fashion but not without making sure I fully understood all that she was saying. Highly recommended"This review was posted by Jude Curtis on the 17th of September 2019